Fidelity is one of the best-known and most prolific of the big-name mutual funds. The Johnson family mostly controls this privately owned company, and it is often associated with the infamous Peter Lynch, who took the company's once little-known Magellan fund from $18 million in assets to $14 billion in assets over a 13-year period starting in 1977.
Research Fidelity Mutual Funds
Appreciate Fidelity's innovative approach to fund management: the company is responsible for several "firsts" in the world of investing. For instance, Fidelity was the first to allow investors the option of purchasing funds through an 800 number, and it was also the first to provide many industry- or sector-specific mutual funds to its investors.
Research the company's Contrafund (FCNTX), its largest and top-rated fund. Managed by William Danoff, this is a large-growth fund begun in 1967, and it targets capital appreciation by investing mostly in growth and value stocks from U.S. based issuers, although stocks from foreign issuers may also be included in the portfolio. It also seeks to invest in the securities of companies that it believes are not valued properly in relation to their industry-specific competition.
Look at the numbers for the Fidelity Contrafund. It has a 5-star rating from Morningstar due in part to its average annual returns: the annual return was 11.54 percent in 2006, 16.23 percent in 2005 and 15.07 percent in 2004. The last negative annual return was posted in 2002.
Prepare to spend a minimum of $2,500 for your initial investment in the Contrafund and a minimum of $250 for each subsequent investment.
Research the company's Magellan fund (FMAGX), its second-largest mutual fund. Begun in 1963, this large-growth fund is currently managed by Harry W. Lange, and like the Contrafund, it aims for capital appreciation by investing in growth and value stocks from domestic and foreign companies. The fund's "go everywhere" approach means there is no specific strategy other than improving performance.
Check out the performance of the Fidelity Magellan fund. Morningstar has given this fund a 5-star rating, and the total annual return was 7.22 percent in 2006, 6.42 percent in 2005 and 7.49 percent in 2004. That said, the fund posted a negative annual return of 23.66 percent in 2002.
Collect at least $2,500 for your initial investment in the Magellan fund. The minimum for subsequent investments is $250.
Research one of the many other mutual funds from Fidelity. There are over 300 to choose from, and their assets include domestic stocks, international stocks, municipal bonds and taxable bonds.
- Before you research Fidelity mutual funds, realize that investing always carries risk as the FDIC does not guarantee or insure mutual funds.
By ehow.com
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